BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1708|
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CONSENT
Bill No: AB 1708
Author: Gatto (D)
Amended: 7/5/12 in Senate
Vote: 21
SENATE INSURANCE COMMITTEE : 9-0, 6/28/12
AYES: Calderon, Gaines, Anderson, Corbett, Correa, Lieu,
Lowenthal, Price, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/10/12 (Consent) - See last page
for vote
SUBJECT : Vehicles: electronic verification of
financial responsibility and insurance
SOURCE : Author
DIGEST : This bill clarifies existing law to allow
motorists to present proof of insurance electronically to
law enforcement agents upon request. This bill also
authorizes auto insurance companies to provide, upon
request of a policyholder, an electronic version of the
proof of insurance card required by law.
ANALYSIS :
Existing law:
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1. Requires every driver and every owner of a motor vehicle
to be able to establish financial responsibility, and,
at all times, carry in the vehicle evidence of a form of
financial responsibility, which may be obtained by a law
enforcement officer from the electronic reporting system
established by the Department of Motor Vehicles (DMV).
2. Requires, upon the demand of a peace officer, that
evidence of registration and proof of financial
responsibility be provided by a person driving a motor
vehicle.
3. Requires a driver who is issued a notice to appear for
any alleged violation of the Vehicle Code or the driver
of a motor vehicle involved in an accident to furnish
written evidence of financial responsibility.
4. Requires an insurer issuing policies of automobile
liability insurance or motor vehicle liability
insurance, upon the request of its insured or the DMV,
to promptly issue written verification as to the
existence of that coverage.
5. The California Constitution requires the state to
reimburse local agencies and school districts for
certain costs mandated by the state. Statutory
provisions establish procedures for making that
reimbursement.
This bill:
1. Authorizes an insurer issuing policies of automobile
liability insurance or motor vehicle insurance to issue,
upon the request of the insured and to the extent
available, electronic verification as to the existence
of the coverage to a mobile electronic device, as
defined, and allows a person to provide evidence of
financial responsibility, upon the demand of a peace
officer, through the use of a mobile electronic device.
2. Requires, when a person provides evidence of financial
responsibility, using a mobile electronic device, to a
peace officer, the peace officer to only view the
evidence of financial responsibility and would prohibit
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him/her from viewing any other content on the mobile
electronic device.
3. Requires, whenever a person presents a mobile electronic
device upon the demand of a peace officer, the person to
assume all liability for any damage to the mobile
electronic device.
Background
According to the author's office, the law is currently
silent on whether or not a motorist may provide an
electronic version of their proof of insurance. This
creates uncertainty for both auto insurance providers and
motorists as to what form their proof of insurance may be
presented in. There have been reports of some officers
accepting electronic forms, at their discretion, due to the
vagueness of the code sections that cover proof of
insurance.
Privacy protection . Some concerns have been expressed
about the personal information stored on a cell phone.
Probabilities what they are, at some point some personal
information will be unintentionally disclosed when
providing a peace officer an electronic device with
personal information. At issue than is what can be done
with the information, especially under the laws of criminal
procedure.
Proposition 8 (1982) added Article 1, Section 28(f)(2), to
the California Constitution ("Victim's Bill of Rights")
that requires that all relevant evidence be admissible in a
criminal proceeding, with some exceptions. Fourth
Amendment jurisprudence has firmly established, under the
Plain View Doctrine, that when a person voluntarily grants
access to otherwise protected area, evidence discovered in
the course of that search is admissible if the evidence is
in plain view; the officer discovers evidence, contraband,
or a fruit or instrumentality of a crime; and the officer
has probable cause to believe (is immediately apparent)
that the item is evidence, contraband, or a fruit or
instrumentality of a crime. (See Arizona v. Hicks 480 U.S.
321 (1987).)
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In order to protect personal privacy, this bill provides
that "the peace officer ? shall only view the evidence of
financial responsibility and is prohibited from viewing any
other content on the mobile electronic device." This
clarifies that the individual is only voluntarily granting
access to the proof of financial responsibility when
turning over the personal electronic device.
Nonetheless, this bill does not seek to amend Proposition 8
(which would require a 2/3 vote). Evidence unintentionally
accessed during an examination (for instance, an unexpected
text received while the officer is reviewing the electronic
proof of coverage) might still be admissible under
Proposition 8 and the Plain View Doctrine.
Practically speaking, this might mean that any person who
hands their cell phone over to a peace officer voluntarily
risks disclosure of private information accidentally
revealed, even though this bill only narrowly authorizes
peace officers to view evidence of financial
responsibility.
Officer safety . As technology develops, new risks may
emerge. Anecdotes involve small weapons disguised as cell
phones or small electronics may pose some additional
danger. The author's office has expressed an interest in
monitoring this issue, although no public safety groups
oppose the bill and no proposals have been made to address
the issue.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/6/12)
Association of California Insurance Companies
Department of Insurance
Personal Insurance Federation of California
ARGUMENTS IN SUPPORT : The author's office states that
this bill will be a step towards greater convenience for
motorists by government acknowledging and adapting to the
more common use of electronics in everyday life. With the
rise of smartphones and other personal electronic devices,
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more and more transactions between persons and business, as
well as between persons and government, are occurring
electronically. As a result, various sorts of information
are being transmitted to, and kept on, these devices for
easier access.
The author's office also points out that in many cases, the
law and government services have not kept up with new
technology. One such instance is with vital documents on
personal electronic devices. With more and more companies
connecting with their customers and providing services via
mobile applications, it seems that now is the time for the
State of California to provide the same convenience to
their customers-the People of our State.
ASSEMBLY FLOOR : 73-0, 5/10/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines,
Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman,
Halderman, Hall, Harkey, Hayashi, Roger Hernández, Hill,
Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Pan, Perea,
Portantino, Silva, Skinner, Smyth, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. Pérez
NO VOTE RECORDED: Cook, Fletcher, Furutani, Jeffries,
Norby, Olsen, V. Manuel Pérez
JJA:k 8/7/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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